FTC orders 8 companies to provide information on 'surveillance pricing' practices

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The Federal Trade Commission has ordered information from eight companies that the agency says offer products and services that use personal data to set prices based on a shopper’s individual characteristics. The FTC said on Tuesday it is seeking to better understand the “opaque market” of “surveillance pricing.

FILE - The Federal Trade Commission building is seen, Jan. 28, 2015, in Washington. The Federal Trade Commission said on Tuesday, July 23, 2024, that it’s ordering eight companies that offer “surveillance pricing” to turn in information about their practices, as the agency investigates potential impacts on privacy and consumer protection.

In a statement sent to The Associated Press Tuesday, Revionics said that it “does not develop software that recommends pricing targeted to specific individuals” — or use individual consumer data “in any manner.” The software company said its AI price optimization software considers several “market-level factors” to recommend optimal prices, such as historical sales data. Revionics added that its data is often sourced from retail partners — reiterating that it “does not, in any way, conduct operations related to the surveillance of consumers.”

Mastercard did not comment when reached by the AP Tuesday afternoon, but confirmed that it received the FTC’s request and would cooperate in the process. The remaining companies did not immediately release additional statements.

 

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